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Whirlpool's Q3 Earnings Upcoming: What Lies Ahead for the Stock?
ZACKSยท 2025-10-22 15:51
Core Viewpoint - Whirlpool Corporation (WHR) is expected to report a decline in both revenue and earnings for the third quarter of 2025, with challenging market conditions impacting performance [1][10]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for third-quarter revenues is $3.92 billion, reflecting a 1.7% decrease from the same quarter last year [2]. - The consensus estimate for quarterly earnings has risen by 2.9% over the past 30 days to $1.42 per share, but this still represents a significant 58.6% decline compared to the previous year [2]. Recent Performance - In the last reported quarter, the company experienced a negative earnings surprise of 13%, although it has surpassed earnings estimates by an average of 0.6% over the last four quarters [3]. Market Conditions and Challenges - Sluggish global demand, negative consumer sentiment, inflationary pressures, and market uncertainty are expected to adversely affect quarterly results [4]. - Weak home sales and reduced discretionary spending have further contributed to performance challenges [4]. - Increased promotional activity, adverse price/mix effects, and foreign currency translations are additional headwinds [4]. Competitive Landscape - The company faces volume pressure due to intensified competition, particularly from foreign rivals who have pre-loaded Asian imports ahead of tariff implementations, creating a highly promotional environment [5]. - Rising raw material costs, particularly for steel, resins, and base metals, are anticipated to impact margins in the upcoming quarter [5]. Management Actions - Management is implementing cost-cutting measures and pricing strategies to mitigate high-cost concerns, including reducing structural and discretionary costs [7]. - The company is focusing on new product introductions and launches as part of its strategy to enhance performance [7]. Valuation Metrics - WHR's forward 12-month price-to-earnings ratio stands at 5.25x, which is below its five-year high of 13.51x and the industry average of 8.50x, indicating potential value for investors [9]. - Over the past three months, WHR's shares have declined by 4.1%, compared to a 7.1% decline in the industry [9].